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Can Business Checking be solely under my partners name?


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4 replies to this topic

#1 gooddfella

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Posted 22 January 2012 - 06:06 PM

I dont need a partner but I'm thinking about having a family member get a EIN for this new business and after they have opened the business checking they'd make me 99% parner. That way they dont have to pay much tax on the income and I get to have a way to receive money from customers and write checks to vendors.
I live in Georgia so if you know of any bank that wouldnt ask for personal information please let me know. I dont care if the business will be an LLC or not, as long as I can get a bank account for it. Thanks



#2 resolv.conf

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Posted 22 January 2012 - 06:44 PM

I dont need a partner but I'm thinking about having a family member get a EIN for this new business and after they have opened the business checking they'd make me 99% parner. That way they dont have to pay much tax on the income and I get to have a way to receive money from customers and write checks to vendors.
I live in Georgia so if you know of any bank that wouldnt ask for personal information please let me know. I dont care if the business will be an LLC or not, as long as I can get a bank account for it. Thanks


If you dont actually need a partner, why not set it up as a single member LLC, and then have the family member simply be the authorized signer. You'd need to pass a company resolution authorizing that person to be the signer, and then have that person actually go to the bank and open the account for the company.

That way, if the bank runs the LLC's EIN, its clear, and if the bank runs the signer's (ie, your friend/family member's) SSN, its clear too.

As you personally are neither the bank's customer, nor a signer on the account, the bank will have absolutely no legitimate reason to run your personal Chex report.

(Running signers if iffy anyway, because the signer isnt the customer, so unless the signer actually consents to the Chex pull, there's no permissible purpose. Disclaimer: I'm not a lawyer and could be wrong, fabricating sh*t, or both.)

I'm in chexsystems, and was able to have my fiance open an account for my single member LLC at a bank that runs signers as well as the business through ChexSystems.The bank did NOT pull my personal Chex report, only hers.

#3 gooddfella

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Posted 23 January 2012 - 12:18 PM

It would be great if it works. I will try that. Thanks

Edited by gooddfella, 23 January 2012 - 12:18 PM.


#4 BRBiz

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Posted 23 January 2012 - 07:20 PM

It depends on the bank some will only allow owners to sign for the account and others will allow signers, I know Bank of America will allow signers only. Some will only issue debit cards to signers so thats another thing you need to keep in mind and agin BOA will issue employee debit cards.

#5 jmw1212

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Posted 24 January 2012 - 11:30 PM

Have you thought about doing a DBA with your name and your company name? I think doing it that way you don't need an EIN. You may want to look into an SCorp too.

I know if you do an LLC all members will be required to be on the bank accts. Banks will require your articles of incorporation and other documents listing the members. Along with the secretary of state current LLC compliance and your business license.

Check out
www.start-a-business.com
They are the best and will give you excellent advice to help you get started with whichever you decide. We started our LLC through them. BTW I am also in GA.
GL

PS: If you are worried about a credit check I found Community Bank and trust ok with that. They use chexsystems and we were in chapter 7 personal bk and were still approved. It basically only checks to see if you left another bank negative. Which we never did.

I dont need a partner but I'm thinking about having a family member get a EIN for this new business and after they have opened the business checking they'd make me 99% parner. That way they dont have to pay much tax on the income and I get to have a way to receive money from customers and write checks to vendors.
I live in Georgia so if you know of any bank that wouldnt ask for personal information please let me know. I dont care if the business will be an LLC or not, as long as I can get a bank account for it. Thanks


Edited by jmw1212, 24 January 2012 - 11:40 PM.





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